As India witnessed sharpest decline in the automobile sector in two decades, Suzuki, Tata motors, Ashok Leyland, Mahindra and Toyota have announced a pause in production.
The current slowdown in the automotive industry has forced many manufacturers and component suppliers to reduce production and plan temporary plant closures.
Tata Motors has stopped production of commercial vehicles for two days. The company's Jamshadepur factory has been closed for a third time from August 16. Earlier Tata Motors was shutdown two times—August 1 and August 8-10. Mahindra & Mahindra will remain closed for a fortnight in July-September.
Vehicle sales in the country have been falling for nine months now, according to the data released by the Society of Indian Automobile Manufacturers (SIAM).
The trend has affected auto component manufacturers. Lucas TVS, owned by TVS Group, declared non-working days for its employees at its Padi factory in Tamil Nadu.
Two-wheeler major Hero MotoCorp has also announced closure of its plants for four days.
Automobile dealers have cut around 2 lakh jobs across the country in the last three months, according to Federation of Automobile Dealers Associations.
Auto stocks tumbled up to 9 per cent on Tuesday after industry body SIAM reported that automobile sales in India witnessed sharpest decline in nearly 19 years in July, dropping 18.71 per cent.
The auto industry has been opposing proposal by Niti Aayog to push for full conversion to EVs for ICE three-wheelers by 2023 and two-wheelers of 150cc and below by 2025, saying a transition was completely uncalled for and could jeopardise the industry.
Prime Minister Modi had recently asserted that India has a large enough market and big enough policy space to ensure growth of both internal combustion engine vehicles and Evs.
Auto industry players on Wednesday welcomed Prime Minister Narendra Modi's assurance that conventional engine vehicles and electric vehicles (EVs) can co-exist in India, saying it would encourage investment and job creation in future.
Society of Indian Automobile Manufacturers President Rajan Wadhera said the assurance is completely in-line with SIAM's recommendations that all relevant technologies should co-exist in India's journey towards sustainable mobility.
He also called for a long-term road-map for all futuristic technologies, which instills confidence to the industry to get going.
(With inputs from PTI)
